Starting your career? Plan your health insurance as soon as possible

Starting your first job is a big win! Now, you can start planning your financials to meet short and long-term goals. Health insurance is an important pillar when planning your financial plan. Health insurance with your first job means you’ll be financially prepared for whatever medical emergencies come your way.

Medical insurance for workers comes with many perks, such as preventive healthcare and tax benefits. Having said that, the various costs and deductions, varying plan features, and the paperwork could be confusing. If you face such difficulties while considering health insurance after your first job, this blog is for you!

How to Approach Financial Planning by Young Professionals

Financial planning can form a solid foundation for a monetarily secure and worry-free future. Here are some ways you can achieve better financial planning:

1. Savings

Set aside a portion of your income regularly to create an emergency fund. This safety net will cushion unexpected expenses and help you reach future goals.

2. Investment

Investments help your money work for you. To build long-term wealth, explore mutual funds, PPFs, or real estate. 

3. Insurance

Insurance is your financial shield. It safeguards you, your loved ones, or your assets from unforeseen events, minimising risks and financial stress.

4. Tax planning

Thoughtful tax planning can minimise what you owe the government, maximising your savings automatically. It’s a win-win!

Benefits of Health Insurance for New Professionals

Medical insurance for workers just starting in their careers is a must. Here’s why:

1. Premium

When you’re younger, you’re presumed to be healthier. This means you’re a smaller liability for your insurance provider, which lowers the premium for comprehensive health cover. 

2. Tax Benefits

Under Section 80D of the Income Tax Act, your health insurance premium is tax deductible (up to ₹25,000 for self and family under 60 years of age).

3. Short waiting period

After purchasing health insurance, you cannot make any claims for a specific period, even in medical emergencies. This period is called the waiting period. So, buying health insurance at an early age is beneficial since the waiting period ends before you get old, enabling you to raise claims as and when required. 

4. No pre-existing diseases

Purchasing health insurance early gives you comprehensive health cover. So, if you develop a health condition later, it will be covered automatically.

5. Broader coverage and less costly add-on

Buying health insurance early means you will automatically get lifestyle disease coverage with other add-ons at lower premiums, as you are considered a low-risk policyholder.

6. Financial security and peace of mind

Buying health insurance for professionals ensures peace of mind and financial security, knowing you won’t have to bear out-of-pocket medical costs in the future.

Top Reasons for New Professionals to Get Health Insurance

Here’s why you should consider medical insurance for workers after your first job:

1. Hectic job schedule

Starting a new job can be exciting but also demanding. Hectic schedules and work pressure can take a toll on your health. Health insurance gives you peace of mind, knowing you can access quality healthcare whenever needed without breaking the bank.

2. Job location with minimal healthcare access

Imagine starting your career in a remote location with no specialised healthcare services. A good health insurance plan will cover treatments, consultations, and emergency services, ensuring quality care regardless of where your job takes you.

3. Neglecting health

Proper nutrition, hygiene, and preventive healthcare are crucial for a healthy foundation. Without guidance, you might neglect these important aspects. Health insurance can be your ally, promoting regular check-ups and connecting you with healthcare professionals who can guide you towards a healthy lifestyle, setting you up for success in your new career.

Top Features to Consider When Buying Insurance At An Early Age

1. Complement your corporate plan

Already have employer-provided insurance? Look for a plan that complements it by filling coverage gaps or offering higher limits. You can explore super top-ups also to increase your coverage at a nominal price.

2. Waiting period

Consider waiting periods for pre-existing ailments, maternity benefits and other conditions while buying health insurance and choose a plan with a shorter waiting period for immediate coverage. 

3. NCB

Choose a policy with “No Claim Benefits” like discounted premiums or increased coverage for every claim-free year.

4. No Co-payment

No copayment is critical if you are young and newly employed. If the plan applies a certain %age of copayment, you are liable to pay that percentage of medical bills out of your pocket. Hence, choose a plan with no copayment, which might be a bit costlier than plans with copayment but will save a lot more in case of a medical emergency. 

5. Modern treatment

When choosing health insurance after your first job, ensure your policy covers modern treatment options to ensure you have access to the latest medical advancements.

Key Takeaways

Early health insurance for professionals is beneficial for many reasons: lower premiums, tax deductions, comprehensive coverage, and financial security. But it’s essential to analyse your health insurance needs while choosing a plan. Consider coverage amount, waiting period, and no claim bonus. Consult a trusted insurance partner like PhonePe that provides personalised solutions and understands your needs so you get #InsuranceYourWay.